Tenders invited for Capitalisation of Vessel Day Scheme Effort Study for PNA / by Francisco Blaha

PNA is inviting for tenders of Consultants to conduct a Study to provide preliminary advice to VDS participants on the feasibility and the potential benefits and costs of transforming the value of VDS PAEs into capital assets for the purpose of improving access to development finance.

Fishing rights have value.  Private rights holders in several countries, including Iceland, Chile, Peru, Namibia, New Zealand and Russia are known to have been able to capitalise this value of rights in ways that have increased the willingness of banks to finance ventures associated with the rights or increased the price that buyers might pay for the business.  

Some VDS participants have taken the capitalisation process a step further and have used the value of VDS days made available for a venture as their contribution towards the equity of joint ventures.  In this way, they have ended up as part owners of a vessel or vessel-owning venture through contributing only the value of VDS access without contributing cash or other assets.

The primary objective of the Study is to provide preliminary advice to VDS participants on the feasibility and the potential benefits and costs of transforming the value of VDS PAEs into capital assets for the purpose of improving access to development finance.

As part of this work, the Study is also aimed at:

  1. establishing the value of VDS PAEs for the purposes of measuring the effectiveness of the VDS over time and benchmarking the effect of proposed changes to the VDS; as well as establishing a basis for counting PAEs as assets of VDS participating governments, including for the purpose of the operation of a capital market for PAE; and
  2. providing advice on including the value of PAEs as assets in the public accounts of VDS participating governments for the purposes of making governments and communities aware of the value of their PAE and their tuna resources and how that value changes over time and is affected by the management and operation of the VDS; as well as strengthening the financial position of VDS participating governments.

The full details of this opportunity are at the following link  http://www.pnatuna.com/node/398